They raised the price target for Google’s stock to $300. Unbelievable! I use Google, and have made money from Google through their Adsense, but a P/E ratio of 112 is insane! That means that at current earnings, it would take 112 years to earn back your investment. I was listening to a book on CD titled Stocks for the Long Run : The Definitive Guide to Financial Market Returns and Long-Term Investment Strategies by Jeremy J. Siegel, and he talked about how the biggest stocks back in the 1970s were the nifty fifty. Some of the stocks had outragous P/E ratios including one approaching 100. Looking back, he calculated that some of the high P/Es were actually justified, but NONE merited a P/E of over 80. Polaroid had the highest P/E with a ratio of 91, and then as far as I can tell, Polaroid’s stock seemed to sink into non-existence. Google face competition from Microsoft, and Yahoo, and whoever else comes along. Where was Google 5 years ago? I was using Alta Vista for searches then. Where is Alta Vista now? Where will Google be in 112 years?
Yes and just wait till the world wide class action lawsuit against Google for violation of privacy. Millions use Google search everyday. There is no disclosure agreement to read before using yet they retain all of this data about you. Insiders of Google have sold hundreds of millions of dollars worth of stock in the last year. Do they believe in their stock? No they are getting their money out while other suckers keep buying.
Comment by Rick — February 17, 2006 @ 1:48 pm
WAS WONDERING IF THERE IS A WAY TO INVEST IN YOUR STOCK, AND HOW MUCH IT WOULD COST TO GET STARTED IN THAT PROGRAM.
Comment by REID HAECK — December 18, 2007 @ 7:16 pm